Murphy Cancels $100M in Medical Debt for New Jersey Residents

TRENTON, N.J. — New Jersey Governor Phil Murphy announced the cancellation of $100 million in medical debt for thousands of state residents. The relief measure, revealed on Tuesday, is part of the governor’s broader effort to alleviate financial burdens on low-income individuals.

The medical debt forgiveness program, made possible through federal funding and partnerships with non-profit organizations, is expected to benefit approximately 70,000 New Jerseyans. The initiative targets those who are most vulnerable, including individuals with incomes at or below 400% of the federal poverty level and those facing medical debt amounting to 5% or more of their annual income.

Today we’re announcing the elimination of $100 million in medical debt for nearly 50,000 New Jerseyans through our partnership with @unduemeddebt.

Medical debt can follow someone for decades. We are wiping the slate clean for thousands and making a real impact on their lives. https://t.co/CsDH7KVQ6g

— Governor Phil Murphy (@GovMurphy) August 20, 2024

Governor Murphy emphasized that the move is a step towards financial justice, helping those who have been disproportionately impacted by healthcare costs. The program aligns with his administration’s ongoing efforts to address economic inequalities in the state.

The debt cancellation is automatic, meaning that eligible residents will not have to apply to receive the relief. Notifications will be sent to those whose debts have been forgiven.

This initiative follows other recent actions by Murphy’s administration to support New Jersey residents, including rent relief and expanded healthcare coverage. The governor’s office stated that the medical debt forgiveness program is expected to have a significant positive impact on the financial stability of affected individuals and families.